CAI Capital-Led Investor Group Acquires GLM Tanks & Equipment Ltd.
From Tanglewood Investments
New York, New York and Houston, Texas - August 23rd 2006 - CAI Capital Partners & Co. III, L.P. and its related entities ("CAI") and Tanglewood Investments Inc. ("Tanglewood") today announced that a CAI-led investor group, including senior management, has agreed to purchase 100% of the equity of GLM Tanks & Equipment Ltd. ("GLM") from Tanglewood Companies L.P. The transaction is expected to close on August 31st, 2006.
GLM is a leading Canadian manufacturing and engineering design company headquartered in Edmonton, Alberta. Founded in 1977, it designs and fabricates steel tanks, vessels and process equipment for the oil and gas, mining, food processing, chemical and pulp and paper industries. The largest percentage of its revenue is derived from products sold to crude oil and refined petroleum products producers in Western Canada. In addition, GLM builds silos for solids handling systems in the coal, sand and cement industries.
GLM employs over 300 skilled trades people and has production facilities located in Nisku (Edmonton) and Camrose, Alberta as well as Battleford, Saskatchewan. A new full service plant in Grande Prairie, Alberta is scheduled to begin operation in October 2006. The production facilities are strategically located near crude oil production, mining, chemical, forestry and refining areas to minimize transportation costs.
"We see this investment as a very attractive opportunity to acquire a business recognized in many industries for its superior product quality and service, led by a highly experienced management team and operating in an industry with significant growth opportunities" said Tracey McVicar, a Managing Director at CAI. "We are excited to make another investment in the Alberta oil and gas sector, and will work with GLM's management team to expand the business in both current and new markets."
"We are looking forward to working with such a supportive private equity group, known for their willingness to champion growth initiatives and their ability to increase shareholder value." said Lee Gottschlich, President of GLM. "We believe GLM's partnership with CAI will give us a competitive advantage and significantly accelerate our company's development."
Tanglewood Managing Director Michael L. Tiner commented, "Since our acquisition of GLM in March, 2001, the company has achieved remarkable growth in revenue and profitability while making the significant investments necessary to provide the foundation for continued growth well into the future. We are extremely pleased that GLM's outstanding management team will be able to continue to grow the company in partnership with an experienced and well respected private equity partner such as CAI."
Following closing, GLM will do business as "GLM Industries L.P." For more information about GLM, visit www.glmtanks.com
About CAI
Founded in 1989, CAI is a private equity firm with a North American investment mandate specializing in buyouts, restructurings and acquisitions where its broad operational and financial expertise and ready access to capital position it as a valued partner for proven, motivated management teams. GLM Tanks represents the 21st business in which CAI has invested since its inception and its fifth in the past ten months. Together with its third fund, CAI will have invested or placed with co-investors over $1 billion in equity or equity-related investments to help fund growth and corporate transition. For more information, visit www.caifunds.com.
About Tanglewood
Tanglewood Investments Inc. located in Houston, Texas, is a private equity firm founded to address the need for equity capital and management expertise in established middle market manufacturing and service companies. Tanglewood focuses on businesses that exhibit the potential for growth through internal operations or add-on acquisitions. Between 1997 and 2002 Tanglewood completed 16 acquisitions that were organized into 6 platform companies. The sale of GLM will be Tanglewood's third investment realization. For more information, visit http://www.tanglewoodinv.com.
Media Relations
| CAI Capital Management Co. Alan Oshiki Broadgate Consultants, 212.232.2354 aoshiki@broadgate.com |
GLM Tanks & Equipment Ltd. Lee Gottschlich President, 780.955.2233 lee@glmtanks.com |
Tanglewood Investments Inc. Michael L. Tiner Managing Director 713.629.5525 mltiner@tanglewoodinv.com |